Problem #7 Humble Oil Company has developed a new well for onshore crude oil production at a total development cost (including estimated reclamation) of US$9.6 million. The well is expected to produce...

Using Cost depletion how would I calculate these two values?

Extracted text: Problem #7 Humble Oil Company has developed a new well for onshore crude oil production at a total development cost (including estimated reclamation) of US$9.6 million. The well is expected to produce 1,187,500 barrels of crude oil equivalent (BOE) over its estimated 7-year life with an expected production profile as follows: Year 1 325,000 BOE Year 2 225,000 BOE Year 3 162,500 BOE Year 4 143,750 BOE Year 5 118,750 BOE Year 6 109,375 BOE Year 7 103,125 BOE Total production 1,187,500 BOE Assuming that Humble Oil would be able to recover $325,000 for the land at the end of its productive life, calculate the following: a) Depletion expense in year 3, under the cost depletion method b) Depletion expense in year 5, under the cost depletion method